Key Points
- Bitcoin (BTC) price surges above $61K, indicating renewed interest from retail traders.
- The total crypto market cap increases by around 6.6 percent to about $2.23 trillion.
After a bearish start to the week, Bitcoin (BTC) price has rallied, indicating a positive end to the week. The leading cryptocurrency experienced a surge of more than 6 percent in the last 24 hours, reaching a daily high of roughly $62,490. The altcoin industry followed a similar trend, leading to a 6.6 percent increase in the total crypto market cap to approximately $2.23 trillion on Friday.
In the wake of this, over $221 million was liquidated from the crypto-leveraged market, predominantly involving short traders.
Bitcoin Sees Renewed Interest
Bitcoin’s potential rebound has sparked renewed interest among investors looking to capitalize on the bull run. The recent Bitcoin price crash, which saw the coin tumble from nearly $70K to about $49K, has drawn comparisons to the 2020 Black Thursday event triggered by Covid-19.
Interestingly, Bitcoin’s price entered a parabolic phase following the 2020 Black Thursday, leading to increased speculation. On-chain data analysis suggests that Bitcoin whales and sharks have been accumulating, regardless of the price volatility.
On-chain data analysis by IntoTheBlock reveals that Bitcoin’s new addresses have bottomed out and started to trend upwards after capitulating since November 2023. The firm noted that this shift indicates renewed interest from retail investors, which could lead to a more balanced market and a stronger foundation for the next growth phase.
It’s worth noting that short-term Bitcoin holders are currently holding the largest unrealized losses since the FTX capitulation, which triggered a swift crypto rebound in the subsequent months.
Market Outlook
The Bitcoin price is expected to benefit significantly from the upcoming US elections as both major political parties show high interest in crypto voters. Furthermore, the US Fed is likely to cut its interest rates soon as inflation continues to slow down.
Bitcoin will also benefit from the regulatory clarity from Russia, a significant member of the BRICS movement.
What’s Next?
Following the pump towards $62K, Bitcoin price filled the CME gap, setting the stage for further upward momentum. Despite the heightened fear of further crypto correction in the coming weeks, Bitcoin dominance has continued to rise and is currently above 57 percent, the highest since April 2021.
From a technical standpoint, the Bitcoin price has reached a crucial resistance range, between $61K and $63K, which needs to be converted to a support level for the bullish momentum to hold in the near term. Furthermore, the weekly Relative Strength Index (RSI) rebounded from the 50 percent level, indicating possible fresh bullish momentum ahead.
